India's antitrust regulator, the Competition Commission of India (CCI), has ordered an investigation into Alphabet-owned Google. This comes amid the tussle between some Indian developers and Google over the in-app billing system. As per the regulatory body, Google violated provisions of the country's antitrust law for enforcing its billing system.
Google Play Store to be investigated by India's antitrust regulator
The government body has ordered its investigative arm to complete the probe within 60 days. The CCI took this decision upon multiple requests by the Indian app developers. For the unversed, Google delisted apps from 10 firms such as Shaadi.com, Bharat Matrimony, Kuku FM, 99acres, Alt Balaji, QuackQuack, Truly Madly, Stage, Naukri.com, and Jeevansathi. More apps were pulled from the app market earlier this month.
The reason for delisting was non-compliance with Google's billing policies. The makers of these apps alleged that Google pulled the apps without any notice. However, Google said otherwise. Soon after, some of these apps were reinstated on the Play Store temporarily, which meant, that compliance with the giant's billing policies was inevitable.
Here came the CCI into the picture, which has now ordered to probe into Google's Play Store billing practices. According to the government body, Google charged Indian app developers a hefty and unfair service fee, which ranged from 10 percent to 30 percent. It said that Google doesn't offer appropriate value of services for the fee it takes.
Further, it said that Google is implementing its billing policies in a discriminatory manner, offering arbitrary distinctions between apps that provide digital goods and services and those that offer physical goods and services, despite them offering similar benefits.
A Google spokesperson in response to CCI's action said that CCI had previously scrutinized the service fee between 2020 and 2022 but it did not find any illegality. He stated that Google takes local laws and regulations in India seriously and will cooperate with the process.
It is worth noting that every other Indian developer, whose apps were banned, criticized Google over its billing policies. Some even called them evil.
“Google is the most evil company for businesses. Our Indian startup system is completely controlled by them,” said Lal Chand Bisu, Co-Founder and CEO of Kuku FM.
Anupam Mittal, Founder of Shaadi.com, stated “Via its 30 percent Lagaan, Google is attempting to wipe out the millions of developers who made its Play Store a success but it won't be that easy. We will fight monopolistic designs against our economy, founders & country.”
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